18) Manchester Development Corp. vs. Court of Appeal PDF

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EN BANC

[G.R. No. 75919. May 7, 1987.]


MANCHESTER DEVELOPMENT CORPORATION, ET AL. , petitioners, vs.
COURT OF APPEALS, CITYLAND DEVELOPMENT CORPORATION,
STEPHEN ROXAS, ANDREW LUISON, GRACE LUISON and JOSE DE
MAISIP , respondents.

Tanjuatco, Oreta and Tanjuatco for petitioners.


Pecabar Law Offices for private respondents.
SYLLABUS
1. REMEDIAL LAW; CIVIL PROCEDURE; NON-PAYMENT OF DOCKET FEE; RENDERS NULL
AND VOID AND COMPLAINTS AND SUBSEQUENT PROCEEDINGS WHERETO. The rule is
well-settled "that a case is deemed led only upon payment of the docket fee regardless
of the actual date of ling in court." Thus, in the present case the trial court did not acquire
jurisdiction over the case by the payment of only P410.00 as docket fee. Neither can the
amendment of the complaint thereby vest jurisdiction upon the Court. For all legal
purposes there is no such original complaint that was duly led which could be amended.
Consequently, the order admitting the amended complaint and all subsequent proceedings
and actions taken by the trial court are null and void. The Court acquires jurisdiction over
any case only upon payment of the prescribed docket fee. An amendment of the complaint
or similar pleading will not thereby vest jurisdiction in the Court, much less the payment of
the docket fee based on the amounts sought in the amended pleading.
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2. ID.; ID.; COMPLAINT; CONTENTS; AMOUNT OF MANDAMUS MUST BE SPECIFIED NOT


ONLY IN THE BODY BUT ALSO IN THE PRAYER. All complaints, petitions, answers and
other similar pleadings should specify the amount of damages being prayed for not only in
the body of the pleading but also in the prayer, and said damages shall be considered in
the assessment of the ling fees in any case. Any pleading that fails to comply with this
requirement shall not be accepted nor admitted, or shall otherwise be expunged from the
record. The court acquires jurisdiction over any upon payment of the prescribed docket
fee.
RESOLUTION
GANCAYCO , J .:
Acting on the motion for reconsideration of the resolution of the Second Division of
January 28, 1987 and another motion to refer the case to and to be heard in oral argument
by the Court En Banc led by petitioners, the motion to refer the case to the Court en banc
is granted but the motion to set the case for oral argument is denied.
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Petitioners in support of their contention that the ling fee must be assessed on the basis
of the amended complaint cite the case of Magaspi vs. Ramolete. 1 They contend that the
Court of Appeals erred in ruling that the ling fee should be levied by considering the
amount of damages sought in the original complaint.
The environmental facts of said case differ from the present in that
1. The Magaspi case was an action for recovery of ownership and possession of a parcel
of land with damages, 2 while the present case is an action for torts and damages and
specific performance with prayer for temporary restraining order, etc. 3
2. In the Magaspi case, the prayer in the complaint seeks not only the annulment of title of
the defendant to the property, the declaration of ownership and delivery of possession
thereof to plaintiffs but also asks for the payment of actual, moral, exemplary damages
and attorney's fees arising therefrom in the amounts speci ed therein. 4 However, in the
present case, the prayer is for the issuance of a writ of preliminary prohibitory injunction
during the pendency of the action against the defendants' announced forfeiture of the sum
of P3 Million paid by the plaintiffs for the property in question, to attach such property of
defendants that may be suf cient to satisfy any judgment that may be rendered, and after
hearing, to order defendants to execute a contract of purchase and sale of the subject
property and annul defendants' illegal forfeiture of the money of plaintiff, ordering
defendants jointly and severally to pay plaintiff actual, compensatory and exemplary
damages as well as 25% of said amounts as may be proved during the trial as attorney's
fees and declaring the tender of payment of the purchase price of plaintiff valid and
producing the effect of payment and to make the injunction permanent. The amount of
damages sought is not speci ed in the prayer although the body of the complaint alleges
the total amount of over P78 Million as damages suffered by plaintiff. 5
3. Upon the ling of the complaint there was an honest difference of opinion as to the
nature of the action in the Magaspi case. The complaint was considered as primarily an
action for recovery of ownership and possession of a parcel of land. The damages stated
were treated as merely ancillary to the main cause of action. Thus, the docket fee of only
P60.00 and P10.00 for the sheriff's fee were paid. 6
In the present case there can be no such honest difference of opinion. As may be gleaned
from the allegations of the complaint as well as the designation thereof, it is both an action
for damages and speci c performance. The docket fee paid upon ling of complaint in the
amount only of P410.00 by considering the action to be merely one for speci c
performance where the amount involved is not capable of pecuniary estimation is
obviously erroneous. Although the total amount of damages sought is not stated in the
prayer of the complaint yet it is spelled out in the body of the complaint totalling in the
amount of P78,750,000.00 which should be the basis of assessment of the filing fee.
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4. When this under-assessment of the ling fee in this case was brought to the attention of
this Court together with similar other cases an investigation was immediately ordered by
the Court. Meanwhile plaintiff through another counsel with leave of court led an
amended complaint on September 12, 1985 for the inclusion of Philips Wire and Cable
Corporation as co-plaintiff and by eliminating any mention of the amount of damages in
the body of the complaint. The prayer in the original complaint was maintained. After this
Court issued an order on October 15, 1985 ordering the re-assessment of the docket fee
in the present case and other cases that were investigated, on November 12, 1985 the trial
court directed plaintiffs to rectify the amended complaint by stating the amounts which
they are asking for. It was only then that plaintiffs speci ed the amount of damages in the
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body of the complaint in the reduced amount of P10,000,000.00. 7 Still no amount of


damages were specified in the prayer. Said amended complaint was admitted.
On the other hand, in the Magaspi case, the trial court ordered the plaintiffs to pay the
amount of P3,104.00 as ling fee covering the damages alleged in the original complaint
as it did not consider the damages to be merely ancillary or incidental to the action for
recovery of ownership and possession of real property. 8 An amended complaint was led
by plaintiff with leave of court to include the government of the Republic as defendant and
reducing the amount of damages, and attorney's fees prayed for to P100,000.00. Said
amended complaint was also admitted. 9
In the Magaspi case, the action was considered not only one for recovery of ownership but
also for damages, so that the ling fee for the damages should be the basis of
assessment. Although the payment of the docketing fee of P60.00 was found to be
insuf cient, nevertheless, it was held that since the payment was the result of an "honest
difference of opinion as to the correct amount to be paid as docket fee" the court "had
acquired jurisdiction over the case and the proceedings thereafter had were proper and
regular." 1 0 Hence, as the amended complaint superseded the original complaint, the
allegations of damages in the amended complaint should be the basis of the computation
of the filing fee. 1 1
In the present case no such honest difference of opinion was possible as the allegations
of the complaint, the designation and the prayer show clearly that it is an action for
damages and speci c performance. The docketing fee should be assessed by considering
the amount of damages as alleged in the original complaint.
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As reiterated in the Magaspi case the rule is well-settled "that a case is deemed led only
upon payment of the docket fee regardless of the actual date of ling in court." 1 2 Thus, in
the present case the trial court did not acquire jurisdiction over the case by the payment of
only P410.00 as docket fee. Neither can the amendment of the complaint thereby vest
jurisdiction upon the Court. 1 3 For all legal purposes there is no such original complaint
that was duly led which could be amended. Consequently, the order admitting the
amended complaint and all subsequent proceedings and actions taken by the trial court
are null and void.
The Court of Appeals therefore, aptly ruled in the present case that the basis of
assessment of the docket fee should be the amount of damages sought in the original
complaint and not in the amended complaint.
The Court cannot close this case without making the observation that it frowns at the
practice of counsel who led the original complaint in this case of omitting any
speci cation of the amount of damages in the prayer although the amount of over P78
million is alleged in the body of the complaint. This is clearly intended for no other purpose
than to evade the payment of the correct ling fees if not to mislead the docket clerk in the
assessment of the ling fee. This fraudulent practice was compounded when, even as this
Court had taken cognizance of the anomaly and ordered an investigation, petitioner
through another counsel led an amended complaint, deleting all mention of the amount of
damages being asked for in the body of the complaint. It was only when in obedience to
the order of this Court of October 18, 1985, the trial court directed that the amount of
damages be speci ed in the amended complaint, that petitioners' counsel wrote the
damages sought in the much reduced amount of P10,000,000.00 in the body of the
complaint but not in the prayer thereof. The design to avoid payment of the required
docket fee is obvious.
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The Court serves warning that it will take drastic action upon a repetition of this unethical
practice.
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To put a stop to this irregularity, henceforth all complaints, petitions, answers and other
similar pleadings should specify the amount of damages being prayed for not only in the
body of the pleading but also in the prayer, and said damages shall be considered in the
assessment of the ling fees in any case. Any pleading that fails to comply with this
requirement shall not be accepted nor admitted, or shall otherwise be expunged from the
record.
The Court acquires jurisdiction over any case only upon the payment of the prescribed
docket fee. An amendment of the complaint or similar pleading will not thereby vest
jurisdiction in the Court, much less the payment of the docket fee based on the amounts
sought in the amended pleading. The ruling in the Magaspi case 1 4 in so far as it is
inconsistent with this pronouncement is overturned and reversed.
WHEREFORE, the motion for reconsideration is denied for lack of merit.
SO ORDERED.

Teehankee, C .J ., Yap, Fernan, Narvasa, Melencio-Herrera, Gutierrez, Jr ., Cruz, Paras,


Feliciano, Bidin, Sarmiento and Cortes, JJ ., concur.
Paras, J ., took no part.
Footnotes

1. 115 SCRA 193.


2. Supra, p. 194.
3. P. 64, Rollo.
4. Magaspi vs. Ramolete, supra, pp. 114-115.
5. Pp. 65-66, Rollo.
6. Magaspi case, supra, p. 194.
7. Pp. 121-122, Rollo.
8. Magaspi vs. Ramolete, supra, pp. 199-200.
9. Pp. 201-202, Rollo.
10. Supra, 115 SCRA 204-205.
11. Supra, 115 SCRA 205.
12. Supra, 115 SCRA 204, citing Malimit vs. Degamo, G.R. No. L-17850, Nov. 28, 1964, 12 SCRA
450, 120 Phil. 1247; Lee vs. Republic, L-15027, Jan. 31, 1964, 10 SCRA 65.
13. Gaspar vs. Dorado, L-17884, November 29, 1965, 15 SCRA 331; Tamayo vs. San Miguel
Brewery, G.R. No. L-17449, January 30, 1964; Rosario vs. Carandang, 96 Phil. 845;
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Campos Rueda Corp. vs. Hon. Judge Bautista, et al., G.R. No. L-18452, Sept. 29, 1962.
14. Supra.

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